The Credit Verification Process

When your company brings on a new customer, part of that process should be verifying their credit information to see whether they have the ability to pay according to your terms.

 

Upon receipt of their completed credit application, you should contact bank and trade references. What you look for from a bank reference is the average balance in the business checking account and whether they have other savings or a line of credit with their bank. When you receive trade references back from the present vendors, you want to determine if they pay them on time, and what line of credit they were granted.

While it is essential to add new business, it is crucial that they pay according to your terms. Remember credit is a privilege not a right!

 

In addition to the bank and trade references, there are other credit verification tools such as Dun & Bradstreet, Equifax, and Hoovers to help you in your decision to grant credit.

 

Learn More

Find out about our Credit Verification Services and see our related Credit Check Map

“The most critical part of the credit/collection function is granting credit to prospective customers.”

Paul Grossi, President & CEO